2021 was another bumper year for fines slapped against financial institutions (FIs) for failures in anti-money laundering (AML) compliance. AML shortcomings in transaction monitoring are a global problem. Countries whose banks were hit with fines include the United States, Germany, the Netherlands, Norway, Latvia, France, the UAE, India, Malaysia, and South Africa.  Fines imposed on FIs by regulators could reach as high as $2 billion for a second year running when the final figures come in, according to estimates. The continuous vigilance of regulators should serve as a wake-up call for financial institutions worldwide to take stock in failures and take action to change the trend in 2022. Some guilty parties lacked an AML compliance culture or even engaged in outright fraud and corruption. Others turned a blind eye. For FIs investing in large and costly compliance teams and tools, it’s surely frustrating to be hit with fines of tens

Fueled by mobster movies and international espionage thrillers, the phrase has a mysterious, exciting edge to it. But as is often the case, the truth is far less appealing than the glitzy Hollywood version. In reality, money laundering is an activity that traps 40.3 million people in modern slavery, fuels political unrest, and finances terrorism across the globe. Considering the consequences, it's no wonder governments enact AML regulations. These regulations have honorable and important intentions, but there's no denying the ever-evolving compliance headaches they create for financial institutions.

Fueled by mobster movies and international espionage thrillers, the phrase has a mysterious, exciting edge to it. But as is often the case, the truth is far less appealing than the glitzy Hollywood version. In reality, money laundering is an activity that traps 40.3 million people in modern slavery, fuels political unrest, and finances terrorism across the globe. Considering the consequences, it's no wonder governments enact AML regulations. And just as money laundering crime grows more sophisticated, so too do the regulations. These regulations have honorable and important intentions, but there's no denying the ever-evolving compliance headaches they create for financial institutions.

The Clearing House recently issued a report that proposed softening Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations. The proposed revamp of rules at this time is both understandable and predictable. Fines totaling hundreds of millions of dollars are now commonplace. Reacting to increased regulations and related fines, covered financial institutions have been spending billions of dollars annually to reduce the like lihood of actions being taken against them. Despite increasing regulatory burdens, growing fines, and requisite increases in compliance spending, the money laundering problem is not abating.